A high credit score not only guarantees a lower mortgage rate, but sometimes it depends on whether you can get a home loan at all. Buyers below a FICO score of 620 have a miniscule chance of securing a mortgage, so step one to getting a home loan and low mortgage rate is working on that credit score. Typically, a score of 740 or more should snag the best mortgage rates from most lenders.

If you’re wondering why a higher credit score matters so much when it comes to mortgages, think of it this way: you wouldn’t lend money to a friend who takes a long time to pay you back (or worse doesn’t pay you at all) would you? Lenders are in the same thought pool, they want to give to people who will pay them back quickly and easily.

If you have a low credit score and are interested in buying a home, there are some easy ways to get it higher in no time. Simply making payments like rent, credit cards and car loans on time is the easiest way to start. Keep your spending to no more than 30 percent of your limit on your credit cards. You can try and pay down high-balance credit cards or consider transferring balances to free up credit. Don’t forget to check for errors on your credit report and work to fix them. Also, shopping for mortgage rates within about a one-month period is advised—too many spread out inquiries can lower your score.

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Compass is a licensed real estate brokerage that abides by Equal Housing Opportunity laws. Information is compiled from sources deemed reliable but is not guaranteed. All measurements and square footages are approximate. This is not intended to solicit property already listed. Compass is licensed as Compass Real Estate in DC and as Compass in Virginia and Maryland. 1313 14th Street NW, Washington, DC 20005 | 202.386.6330